- StablecoinX Unveils 5-Year Partnership With Ethena
SEATTLE — In a significant move set to cement crypto’s place in traditional finance, StablecoinX Ltd. has announced a merger with TLGY Acquisition Corp. through which the company will also go public on the Nasdaq exchange. The deal will value StablecoinX at an estimated $8 billion and provide funding for expansion into the emerging field of crypto corporate treasuries.
Executive Summary
In this critical late-stage development for the cryptocurrency infrastructure sector,
StablecoinX (formerly trading as SBLX) is merging with TLGY Acquisition Corp. (TLGY) under a reverse merger structure, allowing it to access $800 million (at a combination implied fully diluted equity value of $8 billion). The newly formed company, which will trade as StablecoinX Inc. (ticker: USDE), will focus on providing core infrastructure and staking services for the Ethena network while building a liquid corporate treasury supported by the Ethena token (ENA). Analysis suggests this marks the first time a publicly traded crypto infrastructure company will hold significant crypto treasury assets from day one.
The financing is structured as a PIPE with $260M in cash and $100M committed in Ethena coins, supported by major investors including the sponsor entity backing TLGY and foundational investors in the Ethena ecosystem. Notably, Ethena’s related “Foundation” entity will retain controlling interests across material governance mechanisms via exchange of its Series A Preferred stock for common shares held per its EDO (“Ethena DAO”) governance vehicle.
According to court filings and corporate documents, Secure Trust, a leading digital asset management platform, is co-sponsoring 100% of the PIPE commitments alongside long-term crypto investors such as Polychain Capital, Dragonfly Capital Partners, Polymath, Galaxy Digital Holdings, Ribbit Capital and pioneer venture firm Haun Ventures. Regulatory authorities are expected to receive the definitive proxy statement and registration statement in coming weeks to support the merger with public shareholders receiving comprehensive voting ballot materials.
Financial terms show the transaction is valued below $7B public float on a pro forma Nasdaq listing basis, though market indicators suggest the company could be valued near the very top tier of current crypto-infrastructure valuations announced this cycle following Dragonfly’s Graph Technology Corp. and ConsenSys Diligence’s respective listings.
Final shareholders approval is required by the end of this calendar year, with CEO Daniel Kobos predicting a closing between the third and fourth quarters of 2024 depending on the evolution of ongoing decentralized autonomous organization (“DAO”) implementations currently underway.
The deal’s structure delivers clear cataclysmic seeding capital for Ethena Treasury development, EDO roadmap execution and US financial market treasury integration, though questions about token buyback parameters and ongoing COO dynamics require further review.
This marks Ethena’s second major infrastructure round on public markets this month following CZ’s successful circular acquisition of the top positions in the stablecoin sector that continues to unsettle market dynamics globally.
Market analysts are closely watching this transaction as a bellwether for Ethena’s enhanced treasury allocation capabilities, particularly its demonstrated access to dollar-pegged yield-optimizing capital, independent of the bull case expectations drawn from CZ’s substantial funding infusions.
The company intends to list its common shares in January 2024 with initial planned trading below its debt-to-equity swaps later this month.
Analyst consensus leans positive with most rating “Buy” on the projected architectural framework delivered through this transaction. Strong institutional sponsorship and the company’s clear articulation of treasury value realization through layer-two integration is projected to yield upside.
This transaction significantly enhances potential treasury yield scenarios across richer risk return corridors than mere DAI staking, potentially drawing funds away from less productive bridging and uniswap arbitrage channels.
